Over the past three years, the S&P 500 index has delivered substantial returns for investors, with growth stocks in the technology, biotechnology, and consumer goods sectors being particularly sought after. Among these, Artificial Intelligence (AI) has become the core investment theme in the market due to its disruptive potential, with related companies not only achieving impressive revenue growth but also seeing their stock prices soar.
However, in recent weeks, the U.S. stock market has faced numerous challenges. Investors are worried about economic factors such as the pace of interest rate cuts, and are also concerned that while AI tools unlock new capabilities, they might simultaneously impact demand for certain existing companies’ products and services. These headwinds have put pressure on the S&P 500 index, leading to two consecutive weeks of declines. But for long-term investors, market corrections actually breed rare opportunities for positioning, potentially even presenting a once-in-a-decade buying opportunity. The following three stocks deserve close attention.
Leveraging its leadership in the AI market, NVIDIA has been a core driver of the broader market’s rise in recent years. Investors view it as a key participant in the AI revolution, and over the past three years, the company’s stock price has surged more than 700%. NVIDIA designs and produces the world’s most powerful AI chips, making it the preferred partner for major tech giants’ AI projects.
The company has committed to shortening its chip update cycle to one year. Its next-generation products are expected to be released later this year, which could initiate a new wave of growth in 2025 and even into 2026.
COVID-19 vaccine giant Moderna has experienced significant ups and downs over the past few years. As demand for vaccines waned, investor interest plummeted, and the biotech company lost its former glory. Recently, Moderna has also faced challenges from a tighter vaccine policy environment: last year, the government reduced funding for mRNA vaccine research, and recent regulatory developments show that U.S. regulators have refused to review its application for a flu vaccine launch.
Why recommend focusing on Moderna under these circumstances? The key lies in its rich pipeline of products under development. From cancer vaccines undergoing Phase III trials to early-stage drug candidates for rare diseases, Moderna possesses several promising potential products. Even if only a few of these products succeed in the future, it would be enough to transform the company’s prospects.
Similar to NVIDIA, Amazon is also an early winner in the AI boom. Although most people equate it with being an e-commerce giant, the real driver of its profits is its cloud business—Amazon Web Services (AWS). Currently, AWS has become a leader in the AI field, offering customers a broad range of AI products and services. With a forward price-to-earnings ratio around 25 times, Amazon’s stock looks very attractive, potentially presenting a once-in-a-decade buying window.
